27 juin 2019 | International, Autre défense

Lockheed braces for German blowback over cost of missile-defense pitch

By:

PARIS — Lockheed Martin executives are preparing for a stiff debate in Germany about the price tag of a next-generation anti-missile system formally proposed to Berlin just days ago.

“I think the price will be a challenge, and we'll have to negotiate to come to an agreement,” Frank St. John, executive vice president of the company's Missiles and Fire Control business, told Defense News in an interview at the Paris Air Show last week. “But we're going to do better than the early expectations of the price.”

That is a reference to a figure that surfaced during the spring following testimony of a senior German defense official before parliament. At the time, the cost estimate for the TLVS program, short for Taktisches Luftverteidigungssystem, was €8 billion (U.S. $9 billion).

St. John declined to name the price ultimately included by Lockheed Martin and its German partner MBDA in their June 21 proposal. But he suggested the figure would lie significantly enough below the €8 million mark to be considered more than cosmetic.

“I still anticipate a healthy debate and discussion about the pricing and the scope of the program through the negotiation process,” he said.

Negotiations are expected to begin as soon as the German Defence Ministry has analyzed the proposal, described by German officials as being thousands of pages long. If the government and Lockheed Martin come to an agreement, the proposed investment would go before lawmakers for a decision, probably late this year or early next year.

German plans for the TLVS program are based on the Medium Extended Air Defense System, conceived about 10 years ago as a replacement for the Patriot fleets of the United States, Germany and Italy. Soldiers had criticized the decades-old Patriot system as too cumbersome to deploy and maintain in the field.

Germany has stuck with MEADS even after the United States and Italy dropped off, with officials in Berlin arguing the prospect of developing a truly novel defensive weapon was worth the gamble of going it alone.

Defense officials in Germany have since added new requirements. For one, Berlin wants full control over all components, as opposed to buying an American weapon whose inner workings are shrouded in secrecy. In addition, the German government wants to be able to shoot down what officials call “advanced threats” (code for hypersonic missiles, such as those developed by Russia).

According to St. John, Lockheed's latest TLVS proposal comes with the promise of intercepting such threats, though probably not the most sophisticated ones. “And then there is a provision in the contract and in the design of the system to add capability as time goes by and as the threat evolves,” he said.

One of the sticking points for the proposed program — German access to secret performance data of the weapon's principal interceptor, the so-called MSE missile — appears to have been resolved, St. John said. Until late last year, Berlin was unhappy with U.S. Army restrictions placed on the information, which Germany considers crucial for adapting the system to its needs.

Senior Pentagon leaders intervened to help resolve the logjam after Defense News reported on the issue in December 2018.

“We believe that we have coordinated that with the Department of State and the appropriate folks at the Department of Defense, and that the German customer is going to have access to the data they need to evaluate the system,” St. John said. “They'll also have access to the data they need to recommend future modifications. We think that issue is resolved now.”

At the same time, he added, another round of approvals will be needed from the U.S. government as contract negotiations with Germany progress. “We'll have to go back one more time ... to verify that everything is still in a good place."

Patriot-maker Raytheon issued a statement Monday reiterating its readiness to snatch the missile-defense contract from arch enemy Lockheed Martin if the TLVS program goes south. The company especially played up the option of connecting an upgraded Patriot system to a lower-tier system, made by Rheinmetall, to defend against drones and artillery rounds.

Ralph Acaba, president of Raytheon's Integrated Defense Systems business, said his company is increasingly banking on a layered air defense concept in which different systems — perhaps owned by different countries — take on various threat types. “No single nation, no single system can do it all when it comes to missile defense,” he told Defense News at the Paris Air Show.

According to Joseph de Antona, vice president for business development and strategy in Acaba's division, Raytheon does not consider Lockheed's TLVS bid a threat to Patriot sales. “If a country makes a decision, it's our responsibility to honor and recognize that,” he said. At the same time, he added, Raytheon plans to continue to advise the German government on new threats and how to counter them.

The company is “absolutely” still talking to the Berlin government to that effect, de Antona told Defense News.

German lawmakers on the Defence and Budget committees on Wednesday approved roughly €120 million to upgrade the country's Patriot fleet to the newest configuration, known as “3-plus.” According to Raytheon, Berlin's investments to keep Patriot up to date had been lagging since the decision in favor of TLVS.

Meanwhile, the proposed new system's funding profile has begun to take shape. Berlin wants to spend €3.36 billion on TLVS between 2021 and 2028, according to a draft government budget proposal meant for deliberation by lawmakers after the summer recess.

That figure likely would be too low to finance Lockheed's entire program proposal. But the draft budget includes a provision permitting a transfer of funds from the envisioned €5.6 billion budget for a new heavy transport helicopter.

The two contenders for that program are Boeing and Lockheed Martin.

https://www.defensenews.com/digital-show-dailies/paris-air-show/2019/06/26/lockheed-braces-for-german-blowback-over-cost-of-missile-defense-pitch/

Sur le même sujet

  • Raytheon Expects Biden to Block $500M Bomb Sale to Saudi Arabia

    27 janvier 2021 | International, Terrestre

    Raytheon Expects Biden to Block $500M Bomb Sale to Saudi Arabia

    Yet industry executives believe foreign arms sales will remain a priority of the new administration. BY MARCUS WEISGERBER GLOBAL BUSINESS EDITOR JANUARY 26, 2021 02:51 PM ET Raytheon Technologies executives told investors Tuesday that it expects the Biden administration to block at least one arms deal to a Middle Eastern ally as the U.S. shifts its weapons export policy. Raytheon CEO Greg Hayes, speaking on the company's quarterly earnings call, said Raytheon has removed from its books a $519 million projected sale of an “offensive weapon system” to a “customer in the Middle East...we can't talk about.” On the same call, CFO Toby O'Brien said the sale involves an “offensive munition.” The scale of the deal indicates that the execs were referring to the planned sale of some 7,500 Paveway bombs to Saudi Arabia. Last April, Raytheon said in a regulatory filing that its arms sales could be hurt by lawmakers' concerns about Riyadh's role in Yemen's civil war and about the Saudi crown prince's involvement in the murder of a U.S.-based Saudi journalist. Still, in December, Bloomberg reported that the Trump administration was moving ahead with the sale. “We had assumed that we were going to get a license to provide these offensive weapon systems to our customer,” Hayes said. “With the change in administration, it becomes less likely that we're going to be able to get a license for this. And so we appropriately decided that we could no longer support the booking of that contract.” During his Senate confirmation hearing last week, now-confirmed Secretary of State Anthony Blinken said the Biden administration would “end our support for the military campaign led by Saudi Arabia in Yemen.” Still, Hayes said the company does not anticipate issues selling defensive weapons, like Patriot missile interceptors, and other types of arms in the region. “Look...peace is not going to break out in the Middle East anytime soon,” Hayes said. “I think it remains an area where we'll continue to see solid growth.” Similarly, Lockheed Martin CEO Jim Taiclet expected foreign arms sales to remain a priority in the Biden administration. “As far as international business, including foreign military sales, the tendency of the people in the Biden administration [and] in the president's own statements, reiterate his view that alliances are important that they need to be cultivated, and that they have real value in deterrence and national defense,” Taiclet said. “I do think that we'll have a more open environment for [foreign military sales] and direct commercial sales to our international partners.” Taiclet said foreign weapon sales are a way to generate American jobs and stimulate the U.S. economy. “If jobs and the economy are important, the promotion of international defense sales, one would surmise, would also be important,” Taiclet said Tuesday morning on Lockheed's quarterly earnings call. While arms sales create jobs growth, a 2019 Center for International Policy report said those claims, particularly during the Trump administration, were greatly exaggerated. Still Taiclet, a former U.S. Air Force pilot, said arms sales are a way to deepen relationships with an ally. “I can tell you that there's no better way to get a tighter bond with an ally than sell them jet fighter aircraft,” he said. “All the way back in the mid-[19]80s, when I was in pilot training, we had Saudis in our class, for example.” https://www.defenseone.com/business/2021/01/raytheon-expects-biden-block-500m-bomb-sale-saudi-arabia/171645/

  • 3,659 Military Aircraft Contracted For Delivery Over Next Decade

    11 février 2022 | International, Aérospatial

    3,659 Military Aircraft Contracted For Delivery Over Next Decade

    Aviation Week Network’s Fleet Discovery database shows 3,659 manned military aircraft currently under contract for delivery over the next decade.

  • En Allemagne, la plupart des équipements militaires qualifiés de non opérationnels

    2 novembre 2018 | International, Aérospatial, Terrestre

    En Allemagne, la plupart des équipements militaires qualifiés de non opérationnels

    Véhicules de combat d'infanterie Puma, avions de transport militaire Airbus A400M, avions de combat Eurofighter Typhoon, hélicoptères Tigre et NH90... Ces équipements militaires allemands qui devraient être la fierté de la Bundeswehr ne sont plus considérés dans la plupart des cas comme opérationnels, selon le secrétaire d'État allemand à la Défense. Seul un tiers de matériel militaire mis en service en Allemagne en 2017 peut être aujourd'hui considéré comme opérationnel, a annoncé le journal Stuttgarter Nachrichten en se référant au rapport présenté par Peter Tauber, le secrétaire d'État allemand à la Défense. Selon l'homme politique, sur les 97 véhicules de combat livrés, seuls 38 peuvent être utilisés, soit environ 37% du total. Dans le même temps, la Bundeswehr a l'intention d'augmenter leur taux d'aptitude opérationnelle jusqu'à 70%. «Nous pensons toujours que l'industrie doit atteindre les indicateurs convenus le plus vite possible», est-il indiqué dans le rapport de Peter Tauber. La principale préoccupation du ministère de la Défense concerne les véhicules de combat d'infanterie Puma et les avions de transport militaire Airbus A400M. Ainsi, sur les 71 Puma livrés à la Bundeswehr l'an dernier, seuls 27 sont considérés comme aptes au combat, tandis que sur huit A400M, seuls quatre avions de transport militaire peuvent être utilisés. En outre, seul un avion de combat bi-réacteur Eurofighter Typhoon sur quatre a été qualifié d'opérationnel. Sur sept hélicoptères Tigre, seulement deux sont opérationnels, et sur sept hélicoptères polyvalents NH90, seuls quatre sont en état d'être utilisés par la Bundeswehr, indique Die Welt. À la fin d'août, The National Interest avait qualifié de «honteux» l'état de la Marine allemande. Selon le média, la flotte du plus riche pays de l'Union européenne se retrouve pratiquement dans la même situation qu'en 1941 lorsque les navires allemands n'avaient pas pu faire face aux b'timents modernes des Alliés. https://fr.sputniknews.com/defense/201810311038714446-allemagne-equipements-militaires-non-oprationnels/

Toutes les nouvelles